ABSTRACT

The study focused on the exchange rate volatility on Agricultural sector performance in Nigeria from the period of 1980-2017. Secondary data were collected from the publications of Central Bank of Nigeria (CBN): Statistical Bulletin, Economic. Using Mundell-Fleming model, Johansen co-integration test, error-correction mechanism and estimated using the Ordinary Least Squares Regression. Results showed that exchange rate volatility affect agricultural sector performance both positively and negatively in Nigeria; The study shows the key principle of ensuring a true federal structure, with each of the federating units being fiscally viable as to be able to fund its recurrent expenditures, and provide some basic infrastructure on its own without recourse to the centre. Another recommendation made in this study is the need to consolidate the current unviable entities called states that helplessly depend on federal oil revenue even to pay the salaries of clerks into fiscally and economically viable regions. The emphasis is to orchestrate a new politics that is aimed at cake-baking rather than cake sharing, one which aims to mobilize the creative energies of Nigerians and their endowed resources to unleash one of the economic miracles of the 21st Century.